If you are planning to lock your savings in a fixed deposit (FD), it is reasonable to check the interest rates offered by different banks. Although most depositors prefer to open a term deposit account with a bank with which they share a long-term banking relationship, one can consider opting for a new bank so long as the difference in interest rate is considerable.
Here, we list out the highest interest rates offered by top seven banks across different tenures. It is worth mentioning here that the high interest rates are typically offered on long tenure term deposits. This means shorter the tenure, lower the interest rates, and longer the tenure, higher the interest.
Highest fixed deposit interest rates by top 7 banks
HDFC Bank: The private bank offers 7.40 percent interest on its fixed deposit with tenure between 4 years 7 months to 55 months to regular depositors. Senior citizens are entitled to receive 7.90 percent on this tenure, as per the rates rolled out on July 24, 2024.
ICICI Bank offers 7.25 percent to regular citizens and 7.8 percent to senior citizens on a fixed deposit of tenure between 15-18 months.
Kotak Mahindra Bank: Another private lender Kotak Mahindra Bank offers highest interest rate of 7.4 percent to general citizens on a fixed deposit of 390 to 391-day tenure. Senior citizens are offered an extra 50 basis points i.e., 7.9 percent. These interest rates came into force on June 14, 2024.
Federal Bank: It offers an interest of 7.4 percent and 7.9 percent to general citizens and senior citizens, respectively on a fixed deposit of 777-day tenure, according to the rates which came into force on October 16, 2024.
State Bank of India (SBI): The largest bank in the country offers 7 percent and 7.5 percent interest to general and senior citizens on an FD of tenure between 2-3 years. These rates came into force on June 15, 2024.
Bank of Baroda: BOB offers 7.3 percent and 7.8 percent on an FD of 400-day tenure, as per the rates announced on Oct 14 this year.
Union Bank of India: This state lender offers an interest of 7.3 percent on a fixed deposit of 456-day tenure to general citizens. Senior citizens are offered an extra 50 basis points.